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D.C. Weighs How To Spend Surplus

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The D.C. Council has its work cut out for it in determining how to spend a surplus of $89 million in revenues.
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The D.C. Council has its work cut out for it in determining how to spend a surplus of $89 million in revenues.

 

A battle over what to do with an unexpected boost in revenue could take center stage at today’s D.C. Council hearing. Like a winning lottery ticket that’s got 13 co-workers each claiming they bought it, there will be no shortage of opinions on the dais about where the estimated $89 million budget surplus should go.

Some will likely push to spend the money, while others, such as Council member Jack Evans, say the funds need to go right into the city’s depleted savings account.

“My colleagues love spending money and so there is a frenzy to spend that money," says Evans. "I think that could be the worst thing we could possibly do." 

Another potential source of contentious debate will be taxes and whether they should be raised.

Earlier in the year, city lawmakers debated hiking the income tax but instead settled on taxing out-of-state municipal bonds to help close a budget gap.

But there’s been a lot of push-back by bond holders, and now the council will likely revisit the income tax proposal later today and potentially swap the two revenue raisers.

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